OUTSTANDING ISSUED SECURITIES : CEMAC Registers Over 6 Billion FCFA in October 2023
[abelainfo] - The session of the Supervisory Board of the securities settlement and custody unit (CRCT) of the Bank of Central African States (BEAC) held on December 27, 2023 reveals that the outstanding issued securities in the CEMAC zone is at 6 billion FCFA by ending 2023. It should be noted that this outstanding amount represents an increase of 23.7 % compared to the previous year.
(abelainfo) – This growth in the stock of public securities on the BEAC market testifies the increase in the financial needs of the CEMAC States. Despite the restrictive monetary policy put in place by the central bank to fight inflation, the securities market remains dynamic. This policy has led to an increase in the interest rates demanded by investors on the government securities market.
The communiqué published at the end of the CRCT meeting also reveals an increase in the average costs of public securities issued by the State during the period examined. Comparable Treasury bills (ETBs) have seen an increase in their average interest rate, from 5.76 % to 6.03 %. Similarly, comparable Treasury bonds (OTAs) recorded an increase in their average interest rate, from 8.50 % to 8.97 %.
These interest rate increases testify to the attractiveness of public securities issued by the CEMAC states on the regional financial market, despite the restrictive monetary policy of the BEAC. Investors are ready to accept higher rates to finance the needs of the states of the region. It also shows the confidence of investors in the economic and financial stability of CEMAC.
It should be emphasized that the increase in the stock of government securities can also be attributed to the desire of states to diversify their sources of financing. Public securities offer an alternative to traditional bank loans and allow states to mobilize funds on the financial markets.
As a reminder, the stock of securities issued by the CEMAC states has increased significantly, reaching more than 6 billion FCFA at the end of October 2023. Despite the restrictive monetary policy of the BEAC, the securities market remains dynamic, with rising interest rates. This testifies to the attractiveness of public securities issued by the states of the region and the confidence of investors in the economic and financial stability of CEMAC.
Sorelle Ninguem
